May 2006

IZA DP No. 2110: Home Ownership, Job Duration and Wages

published in: Journal of Urban Economics, 2008, 63(1), 130-145

We investigate the impact of home ownership on individual job mobility and wages in Denmark. We find that home ownership has a negative impact on job-to-job mobility both in terms of transition into new local jobs and new jobs outside the local labour market. In addition, there is a clear negative effect of home ownership on the unemployment risk and a positive impact on wages. These results are robust to different strategies for correcting for the possible endogeneity of the home owner variable.